iHeartMedia 2004 Annual Report Download - page 4

Outdoor Advertising
As of December 31, 2004, we owned or operated a total of 823,580 advertising display faces worldwide. We currently provide outdoor
advertising services concentrated in over 49 domestic markets and over 63 foreign countries. Our display faces include billboards of various
sizes, wallscapes, mall displays, transit displays and street furniture displays. Additionally, we currently own equity interests in various outdoor
advertising companies, which we account for under the equity method of accounting.
Revenue is generated from both local and national sales. Local advertisers tend to have smaller advertising budgets and require greater
assistance from our production and creative personnel to design and produce advertising copy. In local sales, we often expend more sales
efforts on educating customers regarding the benefits of outdoor media and helping potential clients develop an advertising strategy using
outdoor advertising. While price and availability are important competitive factors, service and customer relationships are also critical
components of national and local sales.
Advertising rates are generally based on a particular display’s exposure, or number of “impressions” delivered, in relation to the
demographics of the particular market and its location within that market. The number of “impressions” delivered by a display is measured by
the number of vehicles or pedestrians passing the site during a defined period and is weighted to give effect to such factors as its proximity to
other displays, the speed and viewing angle of approaching traffic, the national average of adults riding in vehicles and whether the display is
illuminated. Independent auditing companies verify the number of impressions delivered by a display.
Our billboards consist of various sized panels on which advertising copy is displayed. Bulletin and poster advertising copy is either printed
with computer-generated graphics on a single sheet of vinyl that is “wrapped” around an outdoor advertising structure or placed on
lithographed or silk-screened paper sheets supplied by the advertiser that are pasted and applied like wallpaper to the face of the display.
Billboards are generally mounted on structures we own and are located on sites that are either owned or leased by us or on a site for which we
have acquired a permanent easement. Lease contracts are negotiated with both public and private landlords. Wallscapes are essentially
billboards painted on vinyl surfaces or directly on the sides of buildings. Because of their greater impact and higher cost, larger billboards are
usually located on major highways and freeways. Some of our billboards are illuminated, and located at busy traffic interchanges to offer
maximum visual impact to vehicular audiences. Wallscapes are located on major freeways, commuter and tourist routes and in downtown
business districts. Smaller billboards are concentrated on city streets targeting pedestrian traffic.
Transit displays include all advertising on or in transit systems, including the interiors and exteriors of buses, trains, trams and taxis, and
advertising at rail stations and airports. Transit display posters include vinyl sheets, which are applied directly to transit vehicles or to
billboards and panels mounted in station or airport locations. Transit advertising contracts are negotiated with public transit authorities and
private transit operators, typically on a revenue-share basis with a minimum fixed rental guarantee.
Street furniture displays are developed and marketed under our global Clear Channel Adshel brand. Street furniture panels include bus
shelters, free standing units, pillars and columns. The most numerous are bus shelters, which are back illuminated and reach vehicular and
pedestrian audiences. Street furniture is growing in popularity with local authorities, especially internationally and in the larger domestic
markets. Bus shelters are usually constructed, owned and maintained by the outdoor service provider. Many of our bus shelter contracts include
revenue-sharing arrangements with a municipality or transit authority. Large street furniture contracts are usually won in a competitive tender
and last between 10 and 20 years. Tenders are won on the basis of revenues and community-related products offered to municipalities,
including bus shelters, public toilets and information kiosks.
Live Entertainment
During 2004, we promoted or produced over 28,500 events, including music concerts, theatrical shows, museum exhibitions and specialized
sporting events. We reached 61 million people through all of these activities during 2004. As of December 31, 2004, we owned or operated a
total of 75 domestic venues and 29 international venues. Additionally, we currently own equity interests in various live entertainment
companies, which we account for under the equity method of accounting.
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